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Bradley (12/14) Part b

This topic has 3 replies, 3 voices, and was last updated 8 years ago by MikeLittle.

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November 8, 2016 at 10:59 pm #348137
Anonymous
Inactive
- Topics: 43
- Replies: 65
Hi Mike,
Just need some clarity on the restructuring provision, why is it a debit in the FS and Credit in the p&l……shouldn’t a provision be a credit in the FS and debit in the p&l?
Thanks
November 9, 2016 at 8:18 am #348164
MikeLittle
Keymaster
- Topics: 27
- Replies: 23334
Because the provision was made prematurely before an obligation actually existed so the entry is reversing the premature provision
OK?
November 15, 2016 at 6:00 pm #349128
adurich
Member
- Topics: 127
- Replies: 120
hi,,
for this reverse …the debit is provision obligation and credit is stated as reversal of provision ? …am i right
please help
November 15, 2016 at 8:09 pm #349140
MikeLittle
Keymaster
- Topics: 27
- Replies: 23334
“Reversal of provision” or “Provision no longer required” or anything similar
The description needs only to satisfy the requirements of clarity and non-ambiguity so any appropriate wording will do
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